Churning: practical guidelines for portfolio managers

Churning has been in the news following a ruling in a criminal case rendered by the Swiss Supreme Court in 2024. In this ruling, our High Court established objective criteria for determining the existence of churning.

Churning objectivity: some useful parameters

In private law, churning is not a defined term, and the question of when an asset manager engages in behaviour that constitutes churning depends on several factors.